If any deduction or exemption is left out, you can claim it in your return and save taxes.įorm 16 gives you the details of the PAN and TAN number of your employer you need when filing your income tax returns. You can verify whether the employer has allowed tax-exempt allowances and deductions from your salary income. Alternatively, if a higher TDS has been deposited, you can claim a tax refund. Thus, when you calculate your tax liability, you can deduct the TDS and pay the remaining tax amount. Here’s why:įorm 16 contains the details of the tax already deposited on your behalf. How Form 16 helps in filing income tax * returns?įorm 16 can help you file your income tax returns correctly. The breakup of the allowances exempted under Section 10 of the Income Tax Act, 1961.ĭeductions claimed under Chapter VI A of the Act. Part B, on the other hand, is an annexure to Part A and contains the following information. When you file your income tax returns, Form 16 can help you assess the TDS already deposited with the government on your behalf so that you can calculate your tax liability accordingly.Įmployers issue Form 16 by the 15th of June, with the details of the salary income and TDS of the previous financial year.įorm 16 is divided into two parts - A and B. It also states the salary breakup and exemptions allowed for the year.
It contains the details of the TDS deducted from your salary income. Do you know what the form is all about?įorm 16 is issued by employers.
Form 16 becomes an important document when filing your income tax return.
If you are a salaried employee, your employer will deduct TDS from your salary income and issue Form 16 to support such deductions. If you earn income in a financial year which exceeds the basic exemption limits, you are required to file an income tax return stating the income earned and the tax liability on such income.
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